Bayonne man sentenced to 18 months for tax evasion and bankruptcy fraud

Patrick Franconeri pleaded guilty and was sentenced via video conference on June 24

He jumped through hoops to avoid paying taxes.
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He jumped through hoops to avoid paying taxes.

On June 29, a Bayonne man was sentenced to 18 months in prison for tax evasion and bankruptcy fraud, U.S. Attorney Craig Carpenito announced.

Patrick Franconeri, 57, pleaded guilty before U.S. District Judge Brian R. Martinotti. Franconeri was charged with one count of tax evasion and one count of concealment of assets in bankruptcy. Martinotti imposed the sentence by video conference on June 24.

According to documents filed in this case and statements made in court, Franconeri was the owner and operator of several construction businesses that performed work for a major insurance company in New Jersey.

During tax year 2014, as a result of the operation of the construction companies, Franconeri reportedly earned taxable income of $1,362,950, on which there was an income tax of $558,439. However, Franconeri failed to file a tax return or request an extension for that year, according to Carpenito.

Tried to fly under the radar

Franconeri took actions to conceal and attempt to conceal his income so that he would not have to pay taxes on it, including cashing checks at check-cashing facilities so that the money would not come to the attention of the IRS, according to Carpenito

Franconeri filed a Chapter 7 bankruptcy petition in U.S. District Court in Newark on March 11, 2010, but, according to Carpenito, knowingly and fraudulently concealed property belonging to his bankruptcy estate from the United States Trustee.

Carpenito further reported that Franconeri concealed and failed to disclose his ownership and operation of his construction companies, as well as $965,575 in income he had received in the prior two years as the owner and operator of his construction companies.

Martinotti also sentenced Franconeri to three years of supervised release and ordered him to pay restitution of $716,569 to the victims of his bankruptcy offense and $558,349 in restitution to the IRS.

Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to sentencing.

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